With the resignation of the IMF managing director Dominique Strauss-Kahn now confirmed, a fight is brewing between the East and West, developed and developing worlds for control of the Fund. The Euro dominated IMF is now being challenged, for the first time in earnest, by those who would like to see the Fund led by representatives of countries that are on the rise: Brazil, China, India being the most vocal opponents of European dominance.
German Chancellor Angela Merkel has explained that though those in the developing world had “legitimate claims”, the current fiscal crises in the Euro makes having someone with solid European credentials and connections that much more important.
Dominique Strauss-Kahn resigned yesterday, after being arrested for sexual assault. The agency’s second in command, John Lipsky, is currently acting as the managing director until a permanent director is found.